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Global Hiring with Recruitment Process Outsourcing

By Joshua G Rodriguez Thu, Jun 27,2019 @ AM
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At the end of the first quarter this year Research & Markets published a Global Analysis of the recruitment process outsourcing market.  With this analysis it also conducted a forecast of our current year 2019 through 2027. It states that the RPO model currently accounts for $4.16Bn USD now and that number will be $40.57Bn USD. Incredible numbers in a relatively short time span!

North America is leading the way, and due to the global demand other regions are at the forefront such as Europe and the Asia Pacific regions.  This demand is showing how beneficial it is for recruitment process outsourcing providers.

Global Outsourcing: Offshore vs. Nearshore Recruitment Comparisons

INDUSTRIES ADOPTING RPO

Historically, human resource departments will outsource hiring processes in an attempt to simplify procedures for their organization.  This adaptation has begun to showcase the rise of new companies who are consistently introducing new products and services directly resulting in a “market boost” over the years.

It should go without saying that RPO is not a “one size fits all" model and should be agile as well as scalable to match the business needs of various industries. The ability to adopt this model can be seen in various industries from technology, construction, hospitality, and of course manufacturing markets. All have benefited by utilizing recruitment outsourcing agencies and both sides have been able to increase their revenue.

Related: A Common Sense Guide to RPO for Specific Industries

However, it doesn’t end with just the four mentioned above. The scope of the RPO market also taps into other segments such as telecom, oil & gas, and retail. Because of the growth in these industries, it's creating a huge employment demand which has been beneficial for recruitment process outsourcing service providers.

Suggested: Find RPO Companies in the RPO Discovery Center

GLOBAL TALENT

When recruiting for talent, RPO companies will outsource jobs to other developing economies.  By having their operations outsourced it will tap into a more extensive database of candidates, enabling greater accessibility to the on-demand talent a company needs to achieve its goals.  Simultaneously, this can pump much needed financial gains into local economies.

The schism, of course, being that opinions feel this could reduce recruitment job opportunities for locals instead of filling these openings for those same locals. Debatable indeed but, market development and expansions are equally essential for branding needs. A strategy that worked well for the Atlanta based company Coca-Cola (pops top, sips drink, wears a smile).

Not to fret though, earlier this month a news article published by SIA (Staffing Industry Analysts) identifies the hiring plans from a global view and explains that opportunities are increasing, not decreasing.  Jonas Prising, ManpowerGroup Chairman & CEO states, “Overall, employers around the world are increasingly looking for specific technical and soft skills and are struggling to fill both temporary and permanent positions.” 

Based on a recent blog from Coursera Global Skills Index that looks at the trends of global economy and benchmarks in 60 countries across 10 industries comments that “Two-thirds of the world’s population is falling behind in critical skills, including 90% of developing economies”. Staggering! 

We can see why the market is so competitive and in need of recruitment solutions such as RPO to deliver candidates that can meet these needs.  These are definitive indications that it's critical to invest in entities that can supply workers who can perform and even more beneficial finding those who have global professional experience.

What can be suggested to find this talent? As we know, solid recruitment is established by developing relationships and this would be inclusive of developing a network outside of your comfort zone in our home country. 

Just recently I spoke with the Managing Director at VGS Recruitment Services, David Nield.  David says you have to be able to “completely understand the clients’ needs from the beginning” and “utilize international local resources on the ground”.  He values global partnerships through suppliers and providers that understand the local languages and regulations. This couldn’t be accomplished without relationships built and maintained around the world.

VGS Recruitment Services is an RPO provider based on the south coast of the UK and a Bronze member of the RPO Association.  With their “a world of opportunities” motto they engage business with an approach based on driving results rather than high costs or using retainers. 

Additionally, after working closely with markets in the Middle East, Europe and the US, David has learned the best way to help clients save time, money, energy, and effort is to get it right from the very beginning. To achieve this globally requires an organization that cultivates strong working relationships on the ground and this will provide the best results. 

Global Hiring: Using Cultural Anthropological Glasses

hiring global support members

ADVANCEMENTS IN TECHNOLOGY

This actually touches on a valuable piece of an RPO solution when hiring global support members.  With technology, of course, we have been able to utilize talent from labor markets in other nations that can provide resources and will service clients that are always in need of the latest and relevant skills.  What company couldn’t use someone like this?

In the 21st century, technology has allowed us to take on a more immediate presence in people's lives more than ever before.  Companies have merged communication and technology to create elaborate networks of production that spans the globe. No matter the advancements, these networks require a workforce of human talent that will meet these needs.

An organization’s use of recruitment technology is needed to meet these demands and with more entities comes more ability to offer a variety of digital upgrades specific to the organization’s objectives.  To ensure a solid investment, an organization needs to ruminate on an open discussion with their RPO sponsor so all the facts regarding an assessment of your organization’s current use of digital platforms and ATS (applicant tracking system) are had openly.

Furthermore, tools such as Skype and Slack have made communication that much easier and traditional collaboration has developed in ways that are more innovative than before. 

Coming full circle, the world is becoming smaller, business is evolving, and companies need to adopt new ways of recruiting to build a future of work that is fair and decent for diverse forms of work around the globe.  That includes the acceptance of hiring global talent.

Topics: recruitment process outsourcing, Global Hiring